For certain high net worth individuals it may be beneficial to place an IRA into a trust fund for the protection of the IRA and beneficiaries from potential bankruptcy and other creditors. Inherited IRA’s do not have these protections so forming a trust might be worth the expense if any problems down the line might be foreseen including divorce and financial difficulties. In addition, trusts offer greater control over the disposition of the assets which might add to the appeal of using a trust. While this is not an issue that will apply to many clients, it is still worth keeping in mind for the right situation.
See Kenneth Roberts, Why You Should Put Your IRA In A Trust, Market Watch, Mar. 27, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
